Can Your Credit Score Negatively Affect Your Job Search?
Debbie Allen | Career, Entry, Intern, Job Search| By
The Internet has made it a simple process to do background checks on anyone of interest. Whether you just met someone and plan to begin a relationship or you are applying for a job, there’s a good chance your online reputation will soon be under review. What’s more, if you are applying for a job, everything from Facebook postings to your credit score may be reviewed.
Your credit report can impact on whether you get the job of your dreams!
Fair or Not…
Although many people are upset that employers can use this type of information in making hiring decisions, employers will claim that credit scores can indicate something about how responsible the individual is. In the end, this may also provide clues about the quality of work that can be expected from an individual.
But job seekers’ financial competencies may be skewed because of reasons out of their control. For instance, a medical crisis, divorce, or layoff can lead to a financial setback that is difficult to overcome.
Right or wrong, fair or not, a low or bad credit score can have a negative impact on a job search.
Employers Are in Control and They Like Employees to Be in Control, Too
Certain jobs, more so than others, focus heavily on credit score ratings when considering job applicants. For instance, since jobs in finance focus on number-crunching and financial finesse, credit reports are likely to be a requirement for anyone seeking these positions. If the applicant cannot manage his or her own finances appropriately, why risk the company’s money with him or her?
People dealing with financial struggles are typically under a lot of stress. This can lead to time off from work or less-than-productive workdays. Obviously, this is a red flag for employers.
Low credit scores are red flags to employers.
What You Can Do
Taking all things into consideration, a low credit score can definitely damage your chances for employment. That being said, it can feel like a vicious cycle; as you are denied employment, your financial situation is likely to worsen, and therefore, over time your credit score may continue to drop.
Rather than continuing in this fashion, there are some things you can do to break the cycle. For instance, you could consider downsizing in some way. Perhaps you could take in a roommate or go from having two cars to having only one.
Finding ways to creatively solve financial issues can help improve your credit score; at the same time, it can give you extra spending money. Plus, this helps to boost your self-esteem and self-confidence. All of these are things that can help when seeking employment. Best of luck in your job search!
Do you think your bad credit is affecting you?